When creating or modifying a membership, you can choose from three hold types in the advanced settings: Classic, Prorate, or Continue Billing. The selected hold rule will be applied when the membership is placed on hold.

The Classic and Prorate rules vary based on whether the membership’s scheduled payment occurs within the hold period. If a membership without an end date is put on hold, the next payment date remains unknown until the hold is removed from the membership. All the examples in this article assume that the membership is set to auto-renew and that all holds starting on the day of the scheduled payment were requested before that day.

Caution: If you change the hold rule for an active membership, the new hold behavior will retroactively change the accounting method for all previous payment periods in the payment schedule (even if the membership was not on hold). This may result in prorated or otherwise undesired amounts in the payment schedule. If you want to change a membership’s hold rule, we recommend creating a new membership with the required settings.

To access or start using membership hold rules, complete the following steps to create or modify a membership and apply the hold rules:

Click the App Drawer button then click View All > Setup > Store Configuration > Purchase Options.
On the Purchase Options page
- To create a new membership, click Create Membership.
- To modify an existing membership, click the membership you want to modify in the list. Active memberships that haven’t expired are displayed in purple, while inactive and expired memberships are displayed in gray.
Click on Advanced Settings then scroll down to Membership Hold Rules.
Select one of the three hold rules: Classic, Prorate, or Continue Billing.

Understanding the Three Hold Rules

Below are the different types of hold rules available in WellnessLiving, you can select the one that best align with your business requirements.

Hold Rule: Classic

This hold rule extends the length of a membership contract by the duration of the hold period. This means that if a membership is placed on hold for three days, the membership is extended by three days. When a membership is placed on hold, its scheduled payment dates are moved forward the same number of days as the duration of the hold period. The behavior of this hold rule depends on whether the hold period begins on the date of a scheduled payment.

Your hold period does not begin on a scheduled payment date

If the hold period does not start on a scheduled payment date, the next scheduled payment is moved forward the same number of days as the duration of the hold period.

Note: If a scheduled payment date occurs within the hold period, but the hold period does not start on the scheduled payment date, then this behavior will still be applied (i.e., the next scheduled payment date will be moved forward the same number of days as the duration of the hold period).

Example:

A client has a monthly membership with scheduled payments of $100/month, billed on the 1st of every month. If the client decides to place the membership on hold for three days (January 3rd, 4th, and 5th), their next scheduled payment date is shifted forward by three days. Their next regular payment was due on February 1st, after the hold, it will now be due on February 4th. All future payment dates are moved forward the same number of days the membership is on hold.

Your hold period begins on a scheduled payment date

If the hold period starts on a scheduled payment date, the client is not billed until the next scheduled payment date. All future scheduled payments are moved forward the same number of days as the duration of the hold period.

Example:

A client has a monthly membership with scheduled payments of $100/month, billed on the first 1st of every month. The client decides to place the membership on hold for three days (February 1st, 2nd, and 3rd). The hold starts on a scheduled payment date.

The client was billed $100 on January 1st for the upcoming month. Because the hold period begins on February 1st, the date of the next scheduled payment, the client is not billed. Instead, they will be charged for both February and March’s payments together on March 4th. After the hold period, all future payment dates will be pushed forward by the same number of days the membership was on hold.

Hold rule: Prorate

When applied, this membership hold rule accounts extends the length of a membership contract by the duration of the hold and adjusts the value of the next scheduled payment accordingly. The behavior of this rule depends on whether a scheduled payment is set to occur within the hold period.

When applying a prorate-type hold rule, keep the following information in mind:

If a membership is set to auto-renew, the length of the membership won’t be extended by the duration of the hold period, but the total payment will be prorated.
However, if a membership hold is applied to a past date and the auto-renew date occurs during the hold period, the membership will still auto-renew.
If a membership is set to auto-renew, and then auto-renew is turned off, the length of the membership will be extended by the duration of all previous hold periods. The client will be charged an additional prorated payment for the extension of the membership at the beginning of the extended period.
Alternatively, if a membership isn’t set to auto-renew, the length of the membership will be extended by the duration of the hold period and the client will be charged an additional prorated payment for the extension of the membership at the beginning of the extended period.

Your payment date is not within the hold period

If there is no scheduled payment within the hold period, the client receives a credit for their inactive time, decreasing their next scheduled payment.

Example:

A client has a monthly membership with scheduled payments of $100/month, billed on the first of every month. The client decides to place the membership on hold for three days (January 3th, 4th, and 5th). There is no scheduled payment within the hold period.

The client is billed for the membership’s full value on January 1st. However, because of the hold, their payment on February 1st will be adjusted. They will only need to pay $90.32 for February, since they didn't use the service for those three days in January. The $9.68 difference from the January payment will be credited towards their February bill.

Your payment date is within the hold period

The behavior of this rule depends on whether you select Prorated amount is added to the next scheduled payment or Prorated payments are moved to the day after the hold period ends.

Your prorated amount is added to the next scheduled payment

If a scheduled payment occurs anywhere within the hold period, the client is not billed on that date. Instead, the prorated amount is added to the next scheduled payment.

Example:

A client has a monthly membership with scheduled payments of $100/month, billed on the first of every month. The client decides to place the membership on hold for three days (January 31st, February 1st, and February 2nd). A scheduled payment occurs within the hold period.

The client is billed for the membership’s full monthly value on January 1st, but the scheduled payment for February 1st is not billed because it falls within the hold period. Instead, the February 1st payment is added to the next scheduled payment on March 1st. The payment on March 1st takes into account that the membership was on hold for one day in January and two days in February, resulting in a prorated credit of $9.68.

Your prorated payments are moved to the day after the hold period ends

If a payment is scheduled during the hold period, the client won't be charged on that day. Instead, they'll be billed for a partial amount after the hold period ends. All future scheduled payment dates are moved forward the same number of days as the duration of the hold period.

Example:

A client has a monthly membership with scheduled payments of $100/month, billed on the first of every month. The client decides to place the membership on hold for three days (January 31st, February 1, and February 2nd). A scheduled payment occurs within the hold period.

The client is billed for the membership’s full monthly value on January 1st, but the scheduled payment for February 1st is not billed because it falls within the hold period. Because the client has placed the membership on hold for three days, their next scheduled payment is moved forward three days. The payment on February 4th takes into account that the membership was on hold for one day in January and two days in February, resulting in a prorated credit of $9.68. All future payment dates are moved forward the same number of days the membership is on hold.

Hold rule: Continue Billing

When applied, this membership hold rule extends the length of the membership contract by the duration of the hold period. This means that if a membership is placed on hold for three days, the membership is extended by three days. When a membership is placed on hold, scheduled payments continue to be processed on their respective dates irrespective of the hold. After a hold of this type ends, the client will not need to pay for the extended period of the membership.

Example:

A client has a three-month membership with scheduled payments of $100/month, billed on the first of every month. The client decides to place the membership on hold for three days (January 31st to February 2nd).

The client is billed for the membership’s full monthly value on January 1st, February 1st, and March 1st. At the end of the three-month duration, the membership period is extended by the length of the hold and is automatically renewed on April 4th. All future payment dates are moved forward the same number of days the membership is on hold.